13th Nov 2019 09:44
(Alliance News) - The former directors of Faroe Petroleum are bringing a new member to London's AIM, they said on Wednesday.
Faroe was purchased by Norway's DNO ASA for GBP641.7 million in January this year. At the time of the takeover, Graham Stewart was chief executive, Helge Hammer chief operating officer, and John Cooper finance chief.
Hammer has taken the role of CEO at Longboat Energy Ltd, with Stewart taking the role of non-executive chair and Cooper chief financial officer.
London-based Longboat will look to raise up to GBP10 million in an initial public offering in London and hopes to join the LSE in late November. It did not give any further financial details.
It currently has no assets, and the focus will be on buying oil and gas interests in Norway, the UK, or the wider European Economic Area. It expects the first acquisition to be worth between USD10 million and USD500 million, which would be funded by further issues of shares and debt.
Chair Stewart said: "I am excited to announce our intention to float Longboat Energy on AIM. Longboat has been established to capitalise on the current opportunity in the North Sea and continue the strategy we started at Faroe, delivering value to investors through a combination of innovative and selective M&A, driving operational efficiencies into its assets, and continuing our record as world-class explorers."
Hammer continued: "Longboat Energy is targeting high quality acquisition opportunities in Norway and the UK with the aim of fast-tracking the development of a new, full-cycle, mid cap E&P. We will utilise our strong industry relationships and deep asset knowledge to target assets where we can unlock value and look to replicate Faroe's track record of delivering value through exploration.
"The capital being raised through our IPO will enable Longboat to carry out due diligence on targeted potential deals and fund the business until we make our first acquisition."
By George Collard; [email protected]
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